What Brexit means for UK trade and economy﻿?

What Brexit means for UK trade and economy?

Since Britain voted to leave the EU back in 2016, the British government have been frantically negotiating a plan for what happens post-Brexit. But it seems Brexit has been faced with obstacles every step of the way.

When Brexit was announced, conservative David Cameron (the then-current Prime Minister) resigned, unwilling to lead the country in a deal he didn’t agree with. Since then, the government has undergone a lot of reshuffling, with several cabinet members resigning.

But as we approach the official date of Brexit, plans are being finalised and put to the vote. So we’re starting to get a better idea of what’s in store for the UK and their relationship with the EU, and what Brexit will mean for those involved.

What’s happening with Brexit now?

In just a few months, on the 29thMarch 2019, the UK is scheduled to officially leave the EU, after nearly three years of negotiations. But the closer Brexit gets, the more tension seems to rise in the UK.

But with rumours of MPs road-blocking the deal, both the UK and the EU are fearful of a ‘no-deal’ Brexit, which would be unchartered territory.

How is Brexit affecting those in charge?

Politics always sparks controversy, but Brexit has managed to divide an entire party. Part of the reason it’s taken so long for Britain to come up with a solid deal is because party members struggled to agree every step of the way.

Johnson’s resignation, along with the resignations of several others, including the Science Minister’s resignation just a couple of days ago, show that both the British people and members of May’s party are losing confidence in Brexit and in Prime Minister Theresa May.

However, we have to bear in mind that Brexit hasn’t actually happened yet. Economists have begun comparing the current economy to the economy before the EU referendum, but the economy may rise once a Brexit deal has been reached.

If a successful Brexit deal is agreed upon, one which outlines healthy political and trade agreements with both European countries and the rest of the world, the UK may well be able to deliver on its Brexit promises. The five days of debate starting on the 11thwill give us a better idea of what’s to come.

There’s also the issue that even after the transition period, the UK may have to choose between EU and US trade. And considering the UK does the most trade with the EU, it’s unlikely that it could afford to risk losing that trade. So the UK may be stuck in a position where they have to continue trading mainly with the EU, but paying tariffs that didn’t exist pre-Brexit.